• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

GMX Suspends Trading Due to $42 Million Exploit

user avatar

by Giorgi Kostiuk

5 hours ago


Recently, GMX, a decentralized perpetuals exchange, fell victim to an exploit resulting in a $42 million loss from its GLP liquidity pool on the Arbitrum network. This incident led to a suspension of trading to prevent further losses.

Incident Overview

The exploit resulted in approximately $42 million being drained from GMX's GLP liquidity pool. The attacker used anonymity through Tornado Cash funding, while GMX's leadership remained pseudonymous, providing updates via social media.

GMX's Measures to Protect Users

As a result of the incident, GMX halted trading, as well as GLP minting and redeeming on both Arbitrum and Avalanche. An on-chain message proposed a 10% bounty for the return of funds, with no legal actions if accepted.

"Trading on GMX v1 and the minting and redeeming of GLP have been disabled on both Arbitrum and Avalanche to prevent any further attack vectors and protect users from additional negative impacts," stated the core contributors.

Market Impact and Security

The incident led to a sharp decline in GMX token prices, eroding investor confidence. Approximately $22 million remains in the attacker's wallet, and investigations continue into potential security vulnerabilities in GMX's system.

Financial repercussions include a steep decline in GMX's Total Value Locked (TVL) and token price. The community is focused on security measures and understanding the exploit's details. GMX's previous exploit history increases pressure for security upgrades.

The exploit of the GMX platform highlights inherent vulnerabilities in decentralized finance platforms. Analysts emphasize the need for robust security protocols across blockchain technologies.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Jonathan Gould to Lead Office of the Comptroller of the Currency Following Senate Confirmation

chest

Jonathan Gould has been appointed as the head of the Office of the Comptroller of the Currency (OCC), a significant move for financial regulation in the US.

user avatarGiorgi Kostiuk

Bitcoin Rises Above $117,000 Amid Short Position Liquidations

chest

Bitcoin reached an all-time high of $117,000 due to $1.17 billion in liquidations over 24 hours, surpassing Google's market cap.

user avatarGiorgi Kostiuk

Midas Project Accuses OpenAI of Violations Threatening Nonprofit Status

chest

Midas Project has filed a complaint with the IRS against OpenAI, accusing the company of conflicts of interest and potential misuse of charitable funds.

user avatarGiorgi Kostiuk

Polkadot (DOT) Surges Following Bitcoin's Rise: Current Market Analysis

chest

Prices of DOT have increased by 5% in response to the recent Bitcoin rally, indicating growing investor interest in altcoins.

user avatarGiorgi Kostiuk

What Does the Fed's Transition to ISO 20022 Mean for Crypto?

chest

Learn about the upcoming Fed transition to ISO 20022 and its potential implications for cryptocurrencies, especially XRP.

user avatarGiorgi Kostiuk

Bitcoin Price Spikes, Exceeding $117,000 Amid Massive Liquidations

chest

Bitcoin reached $117,000 supported by $1.17 billion in liquidations. It overtook Alphabet in market capitalization.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.